Whipsaw Action Continues

MARKET SUMMARY

U.S. markets showed continued weakness throughout Friday’s session while setting fresh 2018 lows before surging into positive territory ahead of the closing bell. The whipsaw action in the final hour of trading wrapped up a volatile week with heavy weekly losses not seen in two years.

The Dow jumped 1.4% to after testing a low of 23,360 while closing back above the 24,000 level. The S&P 500 soared 1.5% to reclaim the 2,600 level after tumbling to an intraday low of 2,532 and breaching its 200-day moving average. For the week, both indexes fell 5.2% to post their worst losses since January 2016.

The Nasdaq was higher by 1.4% after trading down to 6,630 and within 1% of its 200-day moving average. The rebound past 6,900 and close just below this level was slightly bullish but the lower highs and lower lows throughout the week remain a bearish signal.

The Russell 2000 gained 1% after tapping an intraday low of 1,436 and September support. The index fell below its 200-day moving average for the first time since August before holding this level into the closing bell.

The Nasdaq finished the week 5.1% lower, representing its worst week since early February of 2016, while the small-caps gave back 4.5%.

THE SCIENCE OF WINNING - PART 3

ANALYST UPGRADES / DOWNGRADES

iRobot (IRBT) upgraded to Outperform from Market Perform at Raymond JamesUnited Technologies (UTX) upgraded to Buy from Hold at ArgusWolverine